Modern fiscal policy should not be limited to the task of balancing the country’s
revenue and expenditure by employing the possibilities inherent in the tax system. We
consider it absolutely important to explore the possibilities of attracting the financial
market and its participants to the fiscal mechanism, where it could serve as an
instrument for raising the fiscal policy efficiency as well as strengthening the basis for
taxation. Speaking about regulating monetary sphere of economic relations realization,
which is the basis of the government’s monetary policy, it would be impossible as such
without mediating its process by financial services markets.
However, the institution of financial intermediation also needs modernizing
in
order to meet all the financial challenges and needs of the present stage of development,
and to ensure the realization of the financial interests of citizens, business entities, and
the state. Thus, the traditional role of the financial market in shaping fiscal and
monetary policies requires revision of its theoretical background; besides, the
approaches to engaging financial market instruments in fiscal and monetary
mechanisms at the application stage need optimising.
In a number of works by foreign and domestic scholars, we could trace the
connection between fiscal and monetary policies on one hand, and the development
and functioning of a financial market or specific markets for financial services on the
other. For instance, about twenty years ago British scholars raised the question of the
effectiveness of monetary and fiscal policies at various levels of financial and
commodity markets integration [1]. Ten years later, a scientific publication appeared
in which the authors attempted to track the ways in which the tax burden affects the
development of the financial market through the mechanism according to which its
participants function [2]. American economist Joseph E. Stiglitz, who won the Nobel
Prize in 2001, has highlighted the connection between the stability of the financial
market and the vectors of financial policy [3]. Some other aspects of the problem have
been considered in the works by scholars from different parts of the world [4-7].
Among Ukrainian scholars, the issue of the link between the markets for financial
services, fiscal and monetary policy is being raised by such academics as
V. P. Unynets-Khodakivska, who is studying the problems of modern fiscal policy in
financial markets in detail [8]. It is also worth mentioning that theoretical principles of
building the tax potential of the financial market are being studied by
Yu. Yu. Verhelyuk [9]. S. V. Naumenkova and B. V. Prykhodʹko are studying global
experience concerning regulation of the financial sector in the context of monetary and
fiscal policy coordination [10]. However, taking into account the non-trivial conditions
of the post-crisis period in which Ukrainian financial market is functioning at the
moment, political instability and the hybrid war which exercise a significant financial
influence on the economy, finding ways to engage the opportunities of the financial
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